The Federal Reserve Bank of Philadelphia reported that its
Nonmanufacturing Business Index of current conditions at the company level
increased to 42.4 during November and recouped most of its October decline. A
higher 55% of respondents reported an improvement in current activity while a
increased 13% reported a decline.

The expectations index for November rose to 53.6 and returned
to the middle of the range in place since early last year. Sixty-seven percent
of respondents reported improved expectations while 14% indicated a decline.

Most components of the overall index
improved m/m. The shipments series recovered to the highest level since March
2012. The new orders series reversed its October decline and rose to the highest
level in three months. The unfilled orders series recovered modestly after its
October decline, but remained down sharply versus the February high. The
inventory index similarly rose to the middle of this year's range.

Further weakness appeared on the labor front. The number of
full-time permanent employees index deteriorated sharply to the lowest level in
six months. A greatly lessened 19% of companies added jobs while a stable nine
percent indicated reduction. The index of part-time/temporary employment
increased modestly and remained in the upward trend in place during the last
year. The average workweek reading continued to trend sideways as it was little
changed m/m. The index of wage & benefit costs declined sharply to the
lowest level since April.

The index of prices paid surged to a record high. A greatly
increased 38% of respondents paid higher prices while none paid less. The prices
received index improved moderately and remained up sharply during the last year.

The index for capital spending on equipment & software
rose modestly after deteriorating sharply three months ago. The capital
expenditures for facilities index remained depressed from 2017 levels.

The Philadelphia Fed figures are diffusion indexes which are
calculated by subtracting the percent of respondents reporting poorer business
conditions from those reporting improvement. So, readings above zero indicate
more positive than negative responses. These indexes have a good correlation
with growth in the series covered. The data are available in Haver's SURVEYS database.